HP's Q2 2012 earnings call the beginning of a major company restructuring - 27,000 jobs to be lost | webOS Nation

HP's Q2 2012 earnings call the beginning of a major company restructuring - 27,000 jobs to be lost 23

by Phil Nickinson Thu, 24 May 2012 7:37 am EDT

HP earnings

HP on Wednesday announced its Q2 2012 earnings. In an exceedingly dry news release, HP noted a 3 percent drop in revenue, from $31.6 billion a year ago to $30.7 billion for the three months ending in March. 

The bigger news, perhaps, is that HP also announced plans for "a multi-year productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders."

That means restructuring, of course, and restructuring generally means a reduction in force. HP announced that it "expects approximately 27,000 employees to exit the company." That's 8 percent of total employees, and they'll be gone by November 2014. Early retirement options will be offered, HP said, so hopefully that will mean fewer layoffs. The reductions also will vary by nation, HP said.

"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Meg Whitman, HP president and chief executive officer. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."

But what about the continued future of our beloved OS? Not surprisingly, the former Palm and the now open-sourced webOS barely garnered a mention in Wednesday's announcements, save for a note that "HP recorded impairment charges to goodwill and certain intangible assets associated with the acquisition of Palm Inc. The charges relate to HP's decision to wind-down the webOS device business."

Source: HP 1, 2



A profitable and successful HP is a good thing for WebOS. If they continue to lose money, I can see their patience wearing out for this endeavor.

What has happened to Derek?

He will be back soon :)

I also saw on one of the news channels that one of the reasons that they are experiencing slow sales is because of mobile devices-smartphones and tablets. So, how are they going to handle that. Getting back into mobile and tablets? And if so, what OS will they run? Android or Windows?

Based on what has been said so far: Windows 8.

If that fails (which I consider likely) they have to decide if they want to go with Android or webos.

I don't see webos getting on HP devices before well into 2013 - at best.

webos in 2012 on new devices will only be enthusiasts having fun with open webos on Android hardware. Nothing mass market.

I don't see webOS getting on any device ever. I don't understand why people think Win 8 will fail and if it does why would webOS succeed?

Ah yes... once again it's just so cut and dry. Perhaps, people simply like the platform and it's potential and would like to see it stick around.

For one thing your post almost ALWAYS suggest that you can't understand why people like webOS , its potential and have a hope that it would stick around, even if it's thinly veiled in your wording. However your biasness against webOS is still obvious and clear to everyone on these forums.
You have a problem if a platform is given a “THIRD” chance to succeed. You think it’s “strange”. Hmmmm….WP7/8 is in it’s what incarnation now?(hint, note the version #) and still has not been a factor in the tablet/phone market (of course we’ll all see if Win8 changes that). And on top of that WP7 and Android have the FINANCIAL BACKING and COMMITMENT of their tech giant owners. Consistently being invested in, improved upon and marketed with the resources that Microsoft and Google have. Just because HP is a tech giant also, doesn’t mean that webOS enjoyed the same as is obvious now.
And BTW it’s not the OS!!!!

I agree with your view...
And what about VIZIOs recent announcement of them getting into PCs, are tablets next? With the ability to maintain low pricing WEBOS would be a great low cost OS for VIZIO!
Anyone have a contact at VIZIO to introduce them to OPEN WEBOS!

I'm sure Vizio would like for their computers and possibly tablets to sell good. In order for them to do that they'll have to stay as far away as possible from webos.

hp's tablet strategy is enterprise and windows 8 much more then consumer. Even so it's tablet strategy is windows 8. It doesn't have a phone strategy according to Meg a few days ago on cnbc. she said they "need to be in mobile" but truth is tablets may be all the mobile they want. it also may be to expensive given the current market powers already firmly entrenched and not going anywhere contrary to webos fanatic wishes. And i mean apple android and microsoft specifically. Blackberry, who knows. I don't think it's going anywhere. But Meg's specifically said they are going to be investing in cloud, data analytics, security, services" and other enterprise stuff. That's where their growth is gonna come from. they are going away from low margin, slow growth sectors.

i agree. win8 is going to be the new vista. and with googlorola behind android, switching to webos is a realistic option.

Really? If Windows 8 sells as much as Windows Vista...that will be considered GOOD on the tablet front.

Much better than android.

And lol at the thought of not using Windows 8 and going to WebOS....the last of you on this site really are reaching for the stars. Admirable if not ridiculous.

vista didn't kill windows though. People still used it. Windows is still the dominant platform.

I didn't really mind Vista all that much, for what I used/use my PC for: games and entertainment....and that's about it. I've switched "up" to 7 now.....and kinda feel like I threw away $200......wasn't really worth the upgrade for me, on my 3 year old desktop.

*sigh* Not much of a secret... but as always, we are left worrying how will this affect webOS longterm. Some part of me is still holding the candle, but it's getting harder to believe that HP's Brass Hats & Penny-Pinchers will stay behind webOS with the company struggling in the aftermath of last Summer's Insanity.

With the company's losses now well into the Billions, nixing webOS still doesn't make for good common sense... but at the same time, from a business standpoint, it's a good time to shed dead weight... Do it while the axe is sharp & the market is willing to accept more cutting. It still wouldn't be a bad time come Fall, when everything is projected to be completely Open Source.

That said, I am hoping that someone can apply webOS to some piece of tech hardware and prove it's case before HP rolls up the rug & tosses webOS into their patent storage closet. As has been said countless times, If HP would actively invest in furthering it's development, webOS has the potential to be a true multi-use platform to build an ecosystem off of. I can easily see webOS serving as the brains behind a modern, multi-function home/business solution systems... Phone/Cable/Communications, HVAC Control, Power Use Manager, Alarm Sytems, Lighting, etc.

Yeah, Sure, that would require some major investments, but if the Brass Hats at HP could actually see "Beyond" their stock values & office views, they might realize that they have something which could potentially be the next big advancement in tech-tied services. Just looking at all of the cutting edge bits that the webOS team was putting together before August, it's clear that there are people who saw it's potential capabilities.

Similarly, I found it sadly interesting that days before this new "Official Announcement", someone at HP decided to finally send out Fresh PR stuff to me, including some coupons & their "Newsletter"... This after months of nothing... All of it simply advertising their wares with a clearly renewed alliance with MS..
"Buy a Select PC & Get an Xbox"...

I think at this point , webOS might be the least of HP's concerns . I love webOS , but being put on the backburner is the last thing that needs to be done with it . Anyways , I wouldn't doubt it if webOS fails once more . I think it was beautiful , but the problem wasn't the software . It was underpowered hardware & very poor management .

You're right webOS is the least of HP's worries. WebOS is a small project that the CEO gets to do for now if they are inpower. As long as Meg can turn around HP and stay in control, webOS will be allowed survive as a relatively low budget, high risk incubator project. If she loses the confidence of the board and investors, then webOS is over. Meg seems to be doing ok esp compared to her predecessors. The layoffs are healthy for HP. HP was bloated and had redundant staff. Just by combining PC and printers divisions, hp saves money and resources for future projects. There is an unfortunate human cost in terms of layoffs but HP has to become a stronger company especially with all its rivals in enterprise and consumer markets. A stronger HP may be able to leverage webOS and find a real place for it in the market either directly or by supporting other OEMS.

The problem is the software. The touchpad has a dual core processor and runs Android ICS just fine. When you loan webOS it runs really slow taking upwards to 3 minutes just to booth and loads the applications really slow. I am not a developer but from my understand the slowness is because of the web design.

Right. The boot time alone is amongst the reasons why someone could call it "webP.O.S."....

Well, the entire Enyo team just left for Google. Maybe they're part of the 27,000?

No they did not leave ,
I think we will see WebOS back in the game sometimes in 2013 ,how do you explain the Enyo 2 project why is it still around if HP killed WebOS ?
the thing is HP was in a hurry when releasing the first incomplete version of Enyo ,as stated by previous palm developers that resulted in the webOS fails .Maybe meg gave the Enyo team to develop a better version which is Enyo 2 then get developers from other platforms to know the Enyo ,we already see this android and iOS developers making apps using Enyo to run on iOS and android which will make these apps to run on webOS too ,so the big fail wasn't webOS itself it was recruiting developers with Enyo There is really nothing wrong in webOS ,it works fast ,brought new things to the mobile world [cards,synergy,.........].
and finally Long live WebOS ...I love my touchpad lol :-P

fouad first of all being a day 1 sprint pre user and owner of pre + and 2 touchpads i have to let you know webos does not work fast and its offten more frustating than funtional. i have ics on both my touchpads and it runs better and has better browsers that function 100% of the time. i hardly use webos any more and when i do im often reminded of why i barely use it anymore. enyo is dead. people are quitting the team and hp is going android. thats all there is to it. right now webos and the whole enyo thing is nothing but dead weight that will never mount to anything. nobody cares and nobody ever will. i use to be so enthusiastic with webos as you are. i use to go to the developer websites and fb pages and annoy them about webos and when will they bring their apps to us webos users. the fact of the matter was that they just didnt care about webos. If they didnt care then why are people going to start now. the best we can all hope for now is for android and ios to impliment all of the best features of webos to their phones. theres nothing that i hate more about my iphone that i cant just pick a picture from my picture app and upload it to fb from there. but anyways all im saying is that if you havent seen the writing on the wall yet then its time to open your eyes. webos is dead. let go. move on.........